German cartel watchdog launches probe into Google

Germany’s antitrust regulator has launched a probe into Google, it was confirmed on Tuesday.

The Bundeskartellamt, the country's Federal Cartel Office, has started proceedings against Google Germany, Google Ireland and Alphabet, Google’s US parent company.

It said it initially wanted to established if the tech giant was of “paramount significance across markets” due to the wide range of digital services it offered, including its search engine, YouTube, Google Maps and Chrome.

Andreas Mundt, Bundeskartellamt president, said: "An ecosystem which extends across various markets may be an indication that a company holds such a market position. It is often very difficult for other companies to challenge this position of power."

A second probe will also assess how Google handles customer data.

"Google’s business model relies to a very large extent on processing data relating to its users," argued Mundt. "Due to its established access to data relevant for competition, Google enjoys a strategic advantage. We will therefore take a closer look at the company’s data processing terms."

The investigation has been launched under the enhanced German Competition Act, after an amendment came into force in January allowing authorities to intervene earlier. The Bundeskartellamt can prohibit companies from engaging in anti-competitive practices.

It has already opened similar probes into Facebook and Amazon.

A spokesperson for Google, which is co-operating with the investigation, told Reuters that people used its services because they were helpful, and not because they were forced to. He added: “We give people easy control over how their information is used and we limit the use of personal information.”